New MLP Has 20% Dividend Growth And Yields 8.65%, With Good Upside Potential

Looking for dividend growth in the high-yield space? This MLP yields 8.65%, with 1.15x coverage over its 1st two quarters. Mgt. is guiding to 20% dividend growth/year through 2019. Mgt. also guided to 1.2x-plus coverage in 2018, and 1.3x coverage in 2019. It's over 13% below analysts' lowest price target.

How does 20% growth in 2018 and 2019 sound? That's what the management of Oasis Midstream Partners LP (OMP) guided to for the future on their Q1 '18 earnings call: "Our strong execution to start the year allows us to remain confident in our full year guidance growing our distribution coverage from approximately 1.1 times coverage currently to 1.15 in the second quarter of 2018 to greater than 1.2 by the end of 2018 into 1.3 times in the first quarter of 2019."

Source: Seeking Alpha

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